Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

FOREX-Yen rebound resumes, Aussie gains, as currency markets weigh risk from COVID wave

Published 2020-11-13, 10:21 a/m
© Reuters.
EUR/USD
-
USD/JPY
-
USD/CHF
-
USD/SEK
-
SOGN
-
PFE
-
DX
-

* Yen recovers some of week's losses

* Dollar slips as vaccine rally peters out

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Updates prices, adds comment)

By David Henry

NEW YORK, Nov 13 (Reuters) - The safe-haven Japanese yen and Swiss franc strengthened on Friday, as the threat of a new COVID-19 wave in the United States and Europe chilled the increased risk appetite that had been driven by promising vaccine news earlier this week.

At 104.72 yen, the dollar had lost 0.32% against the Japanese currency on Friday morning in New York. The yen dropped around 2% versus the dollar on Monday JPY=D3 . The Swiss franc CHF=EBS firmed to 0.9132 against the dollar, after trading at 0.9192 mid-week.

The dollar slipped 0.18% against a basket of currencies =USD .

Global markets surged on Monday after Pfizer Inc (NYSE:PFE) PFE.N said its experimental vaccine was more than 90% effective in trials. The news saw the dollar rise as traders quit their long-yen positions. currency market traders became more risk-averse on Thursday and Friday as infections spread and the heads of the Federal Reserve and the European Central Bank (ECB) stressed that the economic outlook remains uncertain. is tough to have a sustained run of optimism when virus cases continue to mount," said Joe Manimbo, senior market analyst at Western Union Business Solutions. "The market sees light at the end of the tunnel, but we're still in the tunnel."

Despite the pullback, the yen was still on track for its worst week since September.

The euro was up 0.17% at $1.1824.

The prospect of a vaccine is a source of relief but the euro zone will still suffer as a result of new lockdown measures, two ECB policymakers also said. the Australian dollar - a liquid proxy for risk and global economic growth- picked up. It was up 0.26% on the day at 0.7251 versus the dollar.

"The prospect of the Fed staying super-easy through the winter and beyond, while vaccine optimism, builds is dollar bearish," Kit Juckes, an FX strategist at Societe Generale (PA:SOGN), wrote in a note.

"The big winners in the longer-run are the higher-beta, growth and trade-sensitive currencies," he said.

The New Zealand dollar was down 0.06% versus the dollar at 0.6834 NZD=D3 , but still up on the week after jumping to its highest since March 2019 after the Reserve Bank of New Zealand's meeting on Wednesday. health minister said on Friday that it was too early to say how long the latest lockdown would last, while the French prime minister said France's measures would not be eased for at least two weeks. President-elect Joe Biden won the battleground state of Arizona late on Thursday, but President Donald Trump still refuses to accept defeat. ========================================================

Currency bid prices at 9:48AM (1448 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

$92.7910

92.9680

-0.18%

+0.00%

+93.0070

+92.7670 Euro/Dollar

EUR=EBS

$1.1824

$1.1804

+0.17%

+5.47%

+1.1834

+1.1800 Dollar/Yen

JPY=D3

104.7200

105.1050

-0.32%

-3.55%

+105.1450 +104.6950 Euro/Yen

EURJPY=

123.81

124.11

-0.24%

+1.53%

+124.3000 +123.7700 Dollar/Swiss

CHF=EBS

0.9132

0.9152

-0.17%

-5.59%

+0.9159

+0.9128 Sterling/Dollar GBP=D3

1.3165

1.3124

+0.33%

-0.72%

+1.3186

+1.3112 Dollar/Canadian CAD=D3

1.3132

1.3145

-0.10%

+1.09%

+1.3170

+1.3116 Aussie/Dollar

AUD=D3

0.7251

0.7233

+0.26%

+3.35%

+0.7264

+0.7222 Euro/Swiss

EURCHF=

1.0797

1.0801

-0.04%

-0.51%

+1.0816

+1.0791 Euro/Sterling

EURGBP=

0.8980

0.9000

-0.22%

+6.21%

+0.9005

+0.8968 NZ

NZD=D3

0.6834

0.6839

-0.06%

+1.58%

+0.6843

+0.6811 Dollar/Dollar

Dollar/Norway

NOK=D3

9.1415

9.1755

-0.29%

+4.30%

+9.1895

+9.1400 Euro/Norway

EURNOK=

10.8100

10.8287

-0.17%

+9.88%

+10.8537

+10.8070 Dollar/Sweden

SEK=

8.6743

8.6413

+0.52%

-7.20%

+8.6890

+8.6200 Euro/Sweden

EURSEK=

10.2567

10.2040

+0.52%

-2.03%

+10.2705

+10.1988

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ USDJPY

https://tmsnrt.rs/3nf1O7r

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.